DILLA UNIVERSITY

COLLEGE OF ENGINEERING AND TECHNOLOGY

DEPARTMENT OF ARCHITECTURE

THE IMPACT OF WORKING ENVIRONMENT ON EMPLOYEES’ PERFORMANCE: IN CASE OF DEPARTMENT

OF ARCHITECTURE IN DILLA UNIVERSITY

By: DENNIS MASRESHA

Advisor: HAVEN

A Research Proposal submitted to the Dilla University, college of Engineering and Technology, Department
of Architecture Chair for the Partial Fulfillment of Requirements for The Degree of Science (B.Sc.) in
Architecture

January, 2015

Dilla, Ethiopia
 CHAPTER ONE
1.0 INTRODUCTION
1.1 Background to the Study
Working environment plays an important role towards the employees ‘performance. Working
environment is argued to impact immensely on employees’ performance either towards negative or the
positive outcomes. In the world, there are international organizations who debate the rights of employee.
Most people spend fifty percent of their lives within indoor environments, which greatly influence their
mental status, actions, abilities and performance. better outcomes and increased productivity is assumed
to be the result of better workplace environment. Better physical environment of office will boost the
employees and ultimately improve their productivity. Various literature pertains to the study of multiple
offices and office buildings indicated that the factors such as dissatisfaction, cluttered workplaces and the
physical environment are playing a major role in the loss of employees’ productivity.

In the 1990’s, the factors of work environment had changed due to the changes in several factors such
as the social environment, information technology and the flexible ways of organizing work processes.
When employees are physically and emotionally fit will have the desire to work and their performance
outcomes shall be increased. Moreover, a proper workplace environment helps in reducing the number
of absenteeism and thus can increase the employees’ performance which leads to increased productivity
at the workplace.

As the Economic and Social Council reported in 2007, global economic growth is increasingly failing to
create the kinds of new and better jobs that can lead to a reduction in poverty. Despite high and sustained
economic growth in many developing countries, unemployment is rising, a large proportion of the labor
force is working below poverty level wages, and the majority of non-agricultural employment is situated
in the informal economy. It is of little surprise that in recent years there has been a shift of focus from a
singular interest in economic growth to an enlarged concern with improving the quality of workplace.
Governments from across Africa have forcefully called for action to overcome these challenges. The
African Union Extraordinary Summit on Employment and Poverty Alleviation in Africa (Ouagadougou,
September 2004) overwhelmingly endorsed the ILO’s Decent Work Agenda with an emphasis on the
creation of quality jobs. The Government of Republic of Ethiopia supports this pan-African call for the
integration of employment growth and improved quality of work, as reflected in its National Strategy for
Growth and Reduction of Poverty 2005– 2010 and its National Employment Policy of 2008.

1.2 Statement of the Research Problem

The problem identified which made to undergo this research is based on the physical work environment
which mostly affect employees’ performance. The institute is located in an area of about 800 m2 which is
small compared to the number of students and employees. This resulted to lack of enough offices for
employees to do their work effectively, noise which cause discomfort depending on the task they are
given and the environment of the place they are working

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 This study is designed to examine the impact of working environment on employee’s performance at
the institute of Dilla University Department of Architecture. This is the public institution which operates
at the center of Dilla city with about 300 students and 30 employees.

Through this study the employer will get to know how its work environment impacts greatly on the
employee’s level of motivation and performance. A well-designed office signals the values and objectives
of the organization and the use of design in office interior communicates an organization values and
identity. Office design therefore should be one of the factors in affecting employee’s and students’
productivity. Employee’s morale is often interrelated when it comes to productivity in the work
environment

Noble (2009) states that more attention should be paid in identifying and dealing with working
environment because when employee have negative perception to their environment they sometimes
suffer from chronic stress. Opperman (2002) stated that, working environment means those processes,
systems, structures, tools or conditions in the workplace that impact favorably or unfavorably individual
performance. The working environment also includes policies, rules, culture, resources, working
relationships, work location, internal and external environmental factors, all of which influence the ways
that employee perform their job functions

1.3 Research Objectives

This research will be guided by the following study objectives

1.3.1 General Objective

The general objective of this study is to assess the impact of working environment on employees’ and
students’ performance at the Institute of Dilla University Architecture department.

1.3.2 Specific Objectives

I. To make the offices workable and comfortable for work.

ii. To made Institutions that can represent Architecture Department

iii. To determine whether physical work environment has influence on employees’ performance.

iv. To create Offices that had good ergonomics.

v. To create work places which are human concerned.

1.3 Research Questions

I. How does performance feedback improve employees’ performance?

ii. How can job aid enhance employees ‘performance?

iii. What are the physical work environments that add towards employees’ performance?

iv. Which contribution does a supervisor has towards employees’ performance?

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1.5 Significance of the Study
It is anticipated that the findings of the study will pave way for the authorities of the institute of Dilla
University Department of Architecture to accept the variable that affects employees’ working
environment and their performance at the organization. Such an acceptance could be utilized to improve
on the working conditions of employees and students. It will also visualize that the findings of this study
will enable the organization to know how to address issues concerning the employees and its working
environment and to consider office design as an important factor in increasing employees’ performance.

It will therefore serve as a reference material for future researches in this area. Also, the results will throw
more light on factors affecting employee’s performance as far as their environments are concerned. The
study is expected to provide knowledge and measures to improve the working environment of employees
for better performance in public institution specifically at the Institute of Architecture Department in Dilla
University.

1.6 Scope of the Study

The study will focus on employees at the Institute of Architecture department In Dilla University. This is
the public institution which operates at the city center of Dilla with about 300 students and about 30
employees. This study will find out how working environment has a significant impact upon students and
employee performance and productivity.

1.7 Organization of the Study

The study will be structured into five chapters. Chapter one will deal with introduction, statement of
research problem, research objectives and significance of the study. Chapter two will consist of literature
review which will comprise of conceptual definitions, theoretical review, empirical analysis and
conceptual frame work. Chapter three will contain the research methodology which comprise of the
research design, study area, research population, sampling design, and data collection methods. Chapter
four will highlight the presentation and interpretation of data as well as discussing of findings. Chapter
five will contain the summary of the study, recommendations and conclusions

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 CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Introduction
This literature review attempts to discuss the various literature related to working environment which has
impact on employee performance. The discussion also identifies gaps left by other researchers of similar
studies. However, this study attempts to fill those gaps so that the write-up can contribute to a new body
of knowledge in the academic world. Through this review, literature is re-packaged and analyzed as a way
of bringing new insights into the problem studied.

2.2 Conceptual Definitions

This subsection provides definitions of key concepts such as working environment and employee
performance from various sources.

2.2.1 Working environment

Kohun (1992), defines working environment as an entirely which comprises the totality of forces,
actions and other influential factors that are currently and, or potentially contending with the employee’s
activities and performance. Working environment is the sum of the interrelationship that exists within the
employees and the environment in which the employees work.

Brenner (2004) was of the opinion that “the ability to share knowledge throughout organizations
depends on how the work environment is designed to enable organizations to utilize work environment
as if it were an asset. This helps organizations to improve effectiveness and allow employees to benefit
from collective knowledge”. In addition, he argued that working environment designed to suit employee’s
satisfaction and free flow of exchange of ideas is a better medium of motivating employees towards higher
productivity.

Opperman (2002) defines working environment is a composite of three major subenvironments: the
technical environment, the human environment and the organizational environment. Technical
environment refers to tools, equipment, technological infrastructure and other physical or technical
elements. The technical environment creates elements that enable employees perform their respective
responsibilities and activities. The human environment refers to peers, others with whom employees
relates, team and work groups, interactional issues, the leadership and management. This environment is
designed in such a way that encourages informal interaction in the work place so that the opportunity to
share knowledge and exchange ideas could be enhanced. This is a basis to attain maximum productivity.
Organizational environment includes systems, procedures, practices, values and philosophies.
Management has control over organizational environment. Measurement system where people are
rewarded on quantity, hence workers will have little interest in helping those workers who are trying to
improve quality. Thus, issues of organizational environment influence employee’s productivity.

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2.2.2 Employee Performance
Sinha (2001) stated that employees’ performance is depending on the willingness and also the openness
of the employees itself on doing their job. He also stated that by having this willingness and openness of
the employees in doing their job, it could increase the employees’ productivity which also leads to the
performance.

Stup (2003) also explained that to have a standard performance, employers have to get the employees
task to be done on track as to achieve the organization goal or target. By having the work or job done on
track, employers could be able to monitor their employees and help them to improve their performance.

Furthermore, a reward system should be implemented based on the performance of the employees.
This is to motivate the employees in order to perform more on their task. There are several factors that
being described by Stup (2003) towards the success of the employees’ performance. The factors are such
as physical work environment, equipment, meaningful work, performance expectation, feedback on
performance, reward for good or bad system, standard operating procedures, knowledge, skills and
attitudes.

Franco et al (2002) defined performance that relies on internal motivation but presence of internal
factors such as necessary skills, intellectual capacity and resources to do the job clearly have an impact.
As a consequence, employers are supposed to provide appropriate working conditions in order to make
sure the performance of employees meet the required standards.

2.3 Theoretical Literature Review

Employees' performance has been established to be directly related to employees' motivation. This
assertion was corroborated by different management theories since the works of Frederick Taylor on 'The
Principle of Scientific Management' in 1911 and Henry Gantt on 'Works, Wages and Profits' in 1913.
Modern employees' motivation management methods have evolved over time which discredited Taylor's"
differential piece rate -work" and Gantt's "task and bonus wage" systems. The modern employees'
motivation management methods are employees' oriented and are more effective (Gardner and Lambert
1972).

Maslow (1943) said that people work to survive and live through financial compensation, to make new
friends, to have job security, for a sense of achievement and to feel important in the society, to have a
sense of identity, and most specially to have job satisfaction. All employees that have job satisfaction are
high performers in their respective workplaces.

Taylor (1911) opined that the most important motivator of workers is salary and wages when he said
that "non-incentive wage system leads low productivity". He said that if employees receive the same wage
irrespective of their individual contribution to the goal, they will work less and that employees think
working at a higher rate means fewer employees may be needed which discourages employees to work
more (Gardner and Lambert 1972).

Basing on those explanations, this study indicates that the success of any organization largely depends on
the motivation of its employees.

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2.3.1 Goal-setting Theory
The goal-setting theory had been proposed by Edwin Locke in the year 1968. This theory suggests that
the individual goals established by an employee play an important role in motivating him for superior
performance. Skills required include the ability to engage employees in mutual goal setting clarify role
expectations and provide regular performance feedback. Time and energy will also need to be given to
providing relevant performance incentives, managing processes, providing adequate resources and
workplace training. It also advice that in order to drive the organization to peak performance managers
and supervisors must put out front the human face of their organization. Principle here is the human-to-
human interaction through providing individualized support and encouragement to each and every
employee (Salaman et al, 2005).

Employee performance is a major multidimensional construct aimed to achieve results and has a strong
link with planned goals of an organization. Performance is the key multi character factor intended to attain
outcomes which has a major connection with planned objectives of the organization.

Employees ‘goals achievement in this theory is by creating of work environment attractive, comfortable,
satisfactory and motivating to employees so as to give them a sense of pride and purpose in what they
do. How working environment is designed and occupied affects not only how people feel, but also their
work performance, commitment to their employer, and the creation of new knowledge in the
organization.

2.3.2 Expectancy Theory

The most widely accepted explanations of motivation have been propounded by Victor Vroom. His
theory is commonly known as expectancy theory. The theory argues that the strength of a tendency to
act in a specific way depends on the strength of an expectation that the act will be followed by a given
outcome and on the attractiveness of that outcome to the individual to make this simple. Expectancy
theory says that ‘an employee can be motivated to perform better when there is a belief that the better
performance will lead to good performance appraisal and shall result into realization of personal goal
in form of some reward future events.’ The theory focuses on three things efforts and performance
relationship, performance and reward relationship, rewards and personal goal relationship.

This theory is based on the hypothesis that individuals adjust their behavior in the organization on the
basis of anticipated satisfaction of valued goals set by them. In order for employees to perform in this
theory is by making sure each employee's workplace goals and values are aligned with the organization's
mission and vision is important for creating and maintaining a high level of motivation. That can lead to
higher productivity, improve employee performance, reduce the chances of low employee morale,
encourage teamwork and instill a positive attitude during challenging times.

2.3.3 Maslow’s Hierarchy of Needs Theory

Abraham Maslow defined need as a physiological or psychological deficiency that a person feels the
compulsion to satisfy. This need can create tensions that can influence

a person's work attitudes and behaviors, Maslow formed a theory based on his definition of need that
proposes that humans are motivated by multiple needs and that these needs exist in a hierarchical order.
His premise is that only unsatisfied need can influence behavior; a satisfied need is not a motivator.

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 Figure 2.1 Maslow’s theory hierarchy needs

Source: Ramlall, S. (2004)

A person starts at the bottom of the hierarchy (pyramid) and will initially seek to satisfy basic needs
(e.g., food, shelter). Once these physiological needs have been satisfied, they are no longer a motivator.
The individual moves up to the next level. Safety needs at work could include physical safety (e.g.
protective clothing) as well as protection against unemployment, loss of income through sickness etc.).
Social needs recognize that most people want to belong to a group. These would include the need for love
and belonging (e.g., working with colleague who supports you at work, teamwork, communication).
Esteem needs are about being given recognition for a job well done. They reflect the fact that many people
seek the esteem and respect of others. A promotion at work might achieve this. Self- actualization is about
how people think about themselves - this is often measured by the extent of success and/or challenge at
work (Ramlall, 2004). One should also take care that employees don’t just work for financial incentives.
One should create an environment where employees like to come to work because they enjoy their jobs
hence increase performance. Incentives also motivate the employees when you want them to go that
extra mile to achieve your targets. Maslow's model has great potential appeal in the business world. The
message is clear - if management can find out which level each employee has reached, then they can
decide on suitable rewards.

2.3.4 Frederick Herzberg's Theory

Herzberg's theory concludes that certain factors in the workplace result in job satisfaction, but if absent,
they don't lead to dissatisfaction but no satisfaction. The factors that motivate people can change over
their lifetime, but "respect for me as a person" is one of the top motivating factors at any stage of life. He
distinguished between motivators; (e.g., challenging work, recognition, responsibility) which give positive
satisfaction, and hygiene factors; (e.g., status, job security, salary and fringe benefits) that do not motivate
if present, but, if absent, result in demonization. The theory is sometimes called the "Motivator-Hygiene
Theory" and/or "The Dual Structure Theory." Herzberg described four basic states that could occur:

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1. High Motivation/High Hygiene: Perfect state of happy, motivated employees

2. High Motivation/Low Hygiene: Motivated employees who love the work but have lots of Complaints

3. Low Motivation/High Hygiene: Bored employees punching a clock for a Pay check

4. Low Motivation/Low Hygiene: Total mess of bored, unhappy employees.

Herzberg's research proved that people will strive to achieve 'hygiene' needs because they are unhappy
without them, but once satisfied the effect soon wears off - satisfaction is temporary. Then as now, poorly
managed organizations fail to understand that people are not 'motivated' by addressing 'hygiene' needs.
People are only truly motivated by enabling them to reach for and satisfy the factors that Herzberg
identified as real motivators, such as achievement, advancement, development, etc., which represent a
far deeper level of meaning and fulfillment.

2.3.5 McGregor Theory X and Theory Y

McGregor has developed a theory of motivation on the basis of hypotheses relating to human behavior.
According to him, the function of motivating people involves certain assumption about human nature.
Theory X and Y are two sets of assumptions about the nature of people. THEORY X considers individuals
who dislike work and avoid it where possible, individuals who lack ambition dislike responsibility and
prefer to be led, and individuals who desire security. The management implications for Theory X workers
were that, to achieve organizational objectives, a business would need to impose a management system
of coercion, control and punishment. THEORY Y considers effort at work as just like rest or play, ordinary
people who do not dislike work. Depending on the working conditions, work could be considered a source
of satisfaction or punishment, individuals who seek responsibility (if they are motivated). The
management implications for Theory X workers are that, to achieve organizational objectives, rewards of
varying kinds are likely to be the most popular motivator. The challenge for management with Theory Y
workers is to create a working environment (or culture) where workers can show and develop their
creativity.

2.3.6 Working Environment Factors that Affect Employees Performance

An attractive and supportive working environment provide conditions that enable employees to
perform effectively, making best use of their knowledge, skills and competences and the available
resources in order to provide high-quality of organization service. Basing on this study the factors are
explained below.

2.3.6.1 Supervisor Support

A supervisor is also known as a person with an experience leader, a person who can solve problem and
also the role model at the first level of organizational management (Adair, 1988; Nijman, 2004). Therefore,
as an experience leader, the supervisors had always been involved in conducting a training program. The
training program that is being conducted are such as establishing the objectives, selecting the trainer,
developing a lesson plans, selecting the program method and techniques that is being used, preparing the
materials, scheduling the program and also conduct a training needs analysis stated that, a supervisor
could be a trainer to the employees, as the trainer will assist the employees in getting their job done by

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guiding employees on the operational process especially when it comes to a new operational procedure.
A supervisor support could lead to the employees’ performance but there is a case that the supervisor
had failed in supporting their employees. For example, the miscommunication between employees and
the supervisor in term of delivering the information or process on the job to the employees.

In order to gain the employees performance, both party in between the employees and supervisor
needs to play their part which is to commit with the relationship. If full commitment is given, it will lead
to positive result to the performance from the employees

2.3.6.2 Job Aid

Rossett and Gauier (1991) stated that, the purpose of job aid is to direct and guide as to enlighten the
employee’s performance. Job aid also helps in order to support the employees’ performance. An example
of a military performance had been reviewed by (Duncan 1985) regarding the military reliance on job aids
between 1958 and 1972 which is significant and positive contribution toward the military performance.
He also stated that based on the results of military analysis, job aid saved money without jeopardizing
employees work performance. There are three ways to increase performance based on the job aid
(Cavanaugh, 2004). The first way is through the external support which means that the employees need
to take leave from work and look for the source as for their reference to their job. The second way is
through the extrinsic support. An extrinsic support means that the job aid is being given within the system
itself. As for the third way, it is called the intrinsic support. An intrinsic support is an insider or software
that is being used as for the efficiency of workflow.

2.3.6.3Physical Work Environment

Physical working environment can result a person to fit or misfit to the environment of the workplace.
A physical work environment can also be known as an ergonomic workplace. Researches on the workplace
environment need to be done in order to get an ergonomic workplace for every each of the employees.
By having this ergonomic physical workplace at their workplace, it will help employees from not getting
the nerve injury.

Furthermore, McCoy and Evans (2005) stated that the elements of working environment need to be
proper so that the employees would not be stressed while getting their job done. In their article, they also
stated that the physical element plays an important role in developing the network and relationship at
workplace. Result of the employees’ performance can be increased from five to ten percent depending
on the improvement of the physical workplace design at their workplace (Brill, 1992).

Further, Amir (2010) mentions elements that related to the working environment. There are two main
elements which are the office layout plan and also the office comfort. Amir (2010) also stated that a
physical workplace is an area in an organization that is being arranged so that the goal of the organization
could be achieved.

2.3.6.4 Performance Feedback

Performance feedback is an information exchange and conflict resolution process between the
employee and supervisor. This consists of both positive feedback on what the employee is doing right as
well as feedback on what requires improvement. Managers and supervisors will need to be comfortable
with working with the whole range of workplace factors that influence employee performance. While the

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supervisor gives his/her feedback and requirements, the employee enables to give her feedback regarding
his/her requirements. Although this process is formal, it could be managed informally by gaining closer
relations for two sides.

2.3.6.5 Workplace Incentives

The organization determines what motivates its employees and sets up formal and informal structures
for rewarding employees behaving in the way required. Rewards may consist of a mix of internal rewards,
such as challenging assignments, and external rewards, such as higher compensation and peer recognition
(Chandrasekar, 2011). Performance of professional employees is poor not only due to working
environment factors but also due to lack of human resource management aspect such as recognition of
employees who performs well, poor working condition, absence of performance appraisal system and
poor feedback on performance outcome. Therefore, significant changes in promotions, compensation and
benefits helps in keeping employees satisfied and in turn increases production.

2.4 Empirical Analysis

This empirical analysis attempts to discuss various studies on working environment which has impact
on employee performance. These studies will be categorized as empirical analysis in the world, empirical
analysis in Africa and empirical analysis in Ethiopia.

2.4.1 Empirical Analysis in the World

Historically, the job satisfaction-performance linkage has been primarily discussed by theorists from the
Socio-technical and Human Relations schools of thought. According to the Socio-technical approach
(Emery & Trist, 1960), organizational performance depends on congruence between the technical and
social structures of the organization. Building on this notion, the Human Relations perspective posits that
satisfied workers are productive workers (Likert, 1961; McGregor, 1960). Thus, organizational productivity
and efficiency is achieved through employee satisfaction and attention to employees’ physical as well as
socio-emotional needs. Human relations researchers further argue that employee satisfaction sentiments
are best achieved through maintaining a positive social organizational environment, such as by providing
autonomy, participation, and mutual trust (Likert, 1961). Based on this logic, employee satisfaction is
believed to influence the development of routine patterns of interaction within organizations. Through
mutual interactions, employees develop relationships with co-workers that also prescribe behavioral
expectations and influence behaviors (e.g., norms or informal standards of acceptable behavior).

For example, an unhappy employee could be prevented from lowering their performance by control
mechanisms (e.g., standards of measurement, supervisory influence); however, widespread
dissatisfaction among employees could lead to a strike or sabotage that might hinder an organization’s
effectiveness. Alternatively, dissatisfied employees might choose to maintain performance levels (due to
control mechanisms) but neglect to inform supervisors of important information that, over time, would
result in lower organizational effectiveness or efficiency. Thus, employees’ job satisfaction sentiments are
important because they can determine collaborative effort (Harter et al., 2002). Brenner (2004) asserted
that the ability of employees within an organization to share knowledge throughout the system depends
on the conditions of their work environment. Some employees tend to be more productive in a well
facilitated work environment. More so, the quality of comfort variable from work environment
determines the level of satisfaction and productivity of workers.

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Worker’s productivity cannot be optimal, if the conditions of work environment are not favorable.
Improved work environment enhances employee’s productivity.

2.4.2 Empirical Analysis in Africa

Africa today suffers from some aspects of economic, social and political underdevelopment, but that
the most salient characteristic is their poverty (Kamoche, 1997). The argument can thus be made that
improving work habits in African institutions can contribute to Africa’s "graduation from poverty and
vulnerability to well-being and security and development” (Bibangambah 2002). That is development
measured in terms of its three components—economic, social and political, the technological dimension
being part of the economic component—meaning the process of enhancement of capacity to effectively
and adequately meet people's needs (UNDP, 1999). Africa’s incapacitation or lack of capacity to address
the needs of her people or affect desired and appropriate urban and rural management practices is
indicative of the criticality of capacity and capacity enhancement defined by the right work habits of the
working actors. Poor work habits’ adverse impaction productivity and growth is not a new discovery
(Pritchett,2005). The argument has been made that effective development requires high standards of
ethical and performance behaviors, particularly in relation to national governance and major
development projects (World Bank, 1999). The wave of globalization now requires agencies of
governments and companies in other parts of the world including African nations to conduct their
business in an environment characterized by speed and being connected (World Bank, 1981). The
development and retention of intellectual capital determines the competitive advantage of companies
(Pritchett,2005). To survive in the 21century, institutions in Africa must be disposed to constant change
and be adaptable to identify with leading people strategies and practices that correlate with excellent
financial performance and adopt effective benchmarking practices against leading practices in
participating sectors (Drucker, 1993; Senge, 1990).

As suggested by Govindarajulu (2004), in the twenty-first century, businesses are taking more strategic
approach to environmental management to enhance their productivity through improving the
performance level of the employees. It is evident in the research findings of Patterson et al., (1997) that
the more satisfied workers are with their jobs the better the company is likely to perform in terms of
subsequent profitability and particularly productivity. Sekar (2011) argues that the relationship between
work, the workplace and the tools of work, workplace becomes an integral part of work itself. The
management that dictates how, exactly, to maximize employee productivity center around two major
areas of focus: personal motivation and the infrastructure of the work environment.

2.4.3 Empirical Analysis in Ethiopia

Job satisfaction plays a vital role for any organization to achieve its goals and missions. It is not a new
subject since it captured the attention of many scholars for many decades. It refers to the degree or level
of contentment or discontent of an employee regarding his/her work in general. It is a mental attitude
and perception of the work that may eventually create the intention to join an organization, stay or leave
the job. Employees have their own needs, interests, preferences, choices, feelings and wishes which make
them comfortable and feel that they are in a right place in accordance to their capabilities, and that the
job will be the source of satisfying their needs and expectations. According to a report by Sumra (2005),
several areas of interest on teachers’ status in Ethiopia have been identified. These areas can be examined
to understand the contextual national situation of teachers in government-owned schools in.

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 It is through this national contextual situation that analysis can be done to examine the factors that
affect government school teachers’ job satisfaction and performance. These factors have been
categorized as working conditions and living conditions. Generally, the living and working condition of
teachers are poor and not promising for better employees’ performance as well as students’ academic
achievements. This means the higher the satisfaction, the higher the employees’ performance. It implies
that, if other factors remain constant then satisfaction is directly proportional to performance. This
relationship suggests that, if the working and living conditions of teachers will be improved, it is likely that
their satisfaction level will also increase their performance. Motivation has a direct influence on job
performance. When employees are motivated positively it is a catalyst for higher performance. Moreover,
there is a statistically strong relationship between the attitude of employees and the satisfaction with the
reward they expect as a return of their performance. An employee’s positive attitude increases his/her
satisfaction level. There is also a direct relationship between leadership and performance. Good
leadership catalyzes high employees’ performance. Some literatures cited by experts shows that there is
a positive 24 relationship between job satisfaction and productivity, but also other scholars like assert
that employee’s motivation increase productivity.

To achieve high levels of employee productivity, organizations must ensure that the physical
environment is conducive to organizational needs facilitating interaction and privacy, formality and
informality, functionality and cross-disciplinarily. Consequently, the physical environment is a tool that
can be leveraged both to improve business results (Mohr, 1996) and employee well-being (Huang,
Robertson and Chang, 2004). Ensuring adequate facilities are provided to employees is critical to
generating greater employee commitment and productivity. The provision of inadequate equipment and
adverse working conditions has been shown to affect employee commitment and intention to stay with
the organization.

2.5 Research Gap

In the review of the literature, theoretical and empirical studies like Sumra (2005), Brenner (2004),
Sakar (2011), (Harter et al., 2002) have been addressed especially on how working environment relate
and affect employee performance as it is practiced in various areas in the world. It is the quality of the
employee’s workplace environment that most impacts on their level of motivation and subsequent
performance. How well they engage within the organization, especially with their immediate
environment, influences to a great extent their error rate, level of innovation and collaboration with other
employees and absenteeism. Also, most employees leave their organization because of the relationship
with their immediate supervisor or manager.

However, the gap identified from theoretical and empirical analysis is that, management must take an
active role in not only defining the physical environment of the workplace and making it conducive for
workers but also alter the management style to suit the employees. This refers to changing aspects like
ethics, behavior, commitment, professionalism, drive and interpersonal relations in employees for the
better performance. Also, principals of management that dictate how, exactly, to maximize employee
productivity center around two major areas of focus: personal motivation and the infrastructure of the
work environment. Therefore, from the above explanations, this study aims to determine the impact of
working environment on employees’ performance at the Institute of Dilla University Department of
Architecture.

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2.6 Conceptual Framework
Based on the literature review, the relationship between working environment and employee
performance can be conceptualized and depicted in Figure 2.2.

Figure 2.2: Conceptual Framework

Source: Researcher

2.7 Theoretical Framework

Theoretical framework attempts to give explanation of the variables as considered in the conceptual
framework. The relationship is defined in such a way that the set of factors impact on an individual, which
in turn determine the final outcome in terms of increased or decreased performance of that individual.

2.7.1 Job Aid and Employee Performance

A job aid is the external aid to an individual. The purpose of this job aid is to support the work activity
Being one of the working environment factors for employee performance, job aid is being used to guide
the job performance in real time. This means that by having this job aid it will support the employees to
perform and plan for the development so that it can be used as to obtain the optimal use for performance.
Job aid made work to be easier and help minimize error rates. These can include templates, guides, models
and checklists.

2.7.2 Supervisor Support and Employee Performance

Immediate supervisors act as advocates for employees, gathering and distributing the resources needed
by the employees for them to be able to do a good job and providing positive encouragement for a job
well done. As the working environment factor, supervisor interpersonal role is important to encourage

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positive relations and increase self-confidence of the employee and in return improve employee
performance.

2.7.3 Physical Work Environment and Employee Performance

Physical factors in the workplace such as poor layout or overcrowding can lead to common types of
accident such as tripping or striking against objects. There are also some other factors that could affect
the employee’s performance such as noise which will cause discomfort on the employees and thus reduce
the employees’ productivity. An employee could be affected depending on the task they are given and
also the environment of the place they are working. By having a good environment, the employees could
apply their energy and their full attention to perform work.

2.7.4 Work Incentives and Employee Performance

Work incentive for increasing employee performance is often thought to be based on salary and
promotion. In addition, a motivating work environment must be the one in which employees are treated
fairly. No matter what level of input a particular worker has in relation to the business processes as a
whole, it is essential for a manager to give each employee a sense of playing a dynamic, integral role in
something much larger. Indeed, engendering loyalty is a key element of motivating workers and thereby
increasing the overall productivity and employee performance. Therefore, the organization determines
what motivates its employees and sets up formal and informal structures for rewarding them as the
working environment factor which enhances performance.

2.7.5 Performance Feedback and Employee Performance

Performance feedbacks are regular feedback to employees’ information on how they are performing.
This should consist of both positive feedback on what the employee is doing right as well as feedback on
what requires improvement. The feedback needs to be as objective as possible and delivered with the
appropriate interpersonal and conflict resolution skills. It can be a mix of both informal feedback and
feedback delivered as part of a formal performance management cycle.

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 CHAPTER THREE
RESEARCH METHODOLOGY

3.1 Introduction
This chapter describes the methods that were used to gather the data relevant to the study. It contains
the research design, research questions, population, sample size and sampling technique, sampling
procedure and explains the method and procedures for data collection, analysis and interpretation of the
research findings.

3.2 Research Design

Research design refers to a plan which shows the strategy of an inquiry thought appropriate to the
research. For the purpose of this study, descriptive research design was used. The descriptive design
describes phenomena as they exist. It issued to identify and obtain information on the characteristics of
a particular problem or issue. Descriptive research design was selected because it has the advantage of
producing good number of responses from a wide range of people. Also, this design provides a meaningful
and accurate picture of events and seeks to explain people’s perception and behavior on the basis of the
data collected. The advantage with this design is that it helps to find views as they are in their natural
setting. The reason for using this design is that, this approach helps the researcher to obtain a full pictures
and facts about the nature and problems associated with working environment.

3.3 Research Questions

▪ How can I provide a better working environment for students and employees
▪ What type of space needed for good working environment by feeling how the problem is
relevance (priority problem)
▪ What type of solution should be provided to solve the problem?
▪ Does really the proposed solution can solve the potential problem?

3.3 Study Area

The study area of this research was at The Institute of Dilla University Architecture Department. This
study aimed to target Dilla University Architecture Department who are responsible on employee’s
performance management and the employees. The Institute of Dilla University was selected due to its
geographical location and the existed factors that employees are encounter in attaining their job.
Therefore, this study expects to get more useful information for the subject matter to pave a way for the
management on how to overcome those challenges so that to enhance employee’s performance by
improving their working environment.

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3.4 Population of the Study
A population is any group of individuals that has one or more characteristics in common and that are of
interest to the researcher. Therefore, the target population of this study included, students, teachers,
head of departments who manage all activities and staff members. The total population size at institute
of Dilla University Architecture Department is about 30 employees which includes teaching and non-
teaching staffs and about 300 students

3.5 Sample Size and Sampling Techniques

3.5.1 Sample Size
Is small group of respondents drawn from a population about which a researcher is interested in
getting the information so as to arrive at a conclusion. This study selected respondents who are
responsible on employee’s performance management and employees themselves (staff members).
Respondents help the researcher plans and to generalize the findings (Best & Kahn, 2006). In this study, a
sample of 10 respondents of both teaching and non-teaching employees were used by answering
questionnaires for the purpose of getting the findings of the study. A sample of 10 respondents were
selected out of about 30 employees and about 300 students because they considered to represent and
having vital information for the study by virtue of their positions.

In research investigations involving several hundreds or thousands of elements, it would be practically

impossible to collect data from, or test, or examine every element. Even if it were possible, it would be
prohibitive in terms of time, cost and other human resources. That’s why sampling to make research
feasible. A breakdown of the sample is presented in Table 3.1

Participants Target population Sample size

Head of Department 1 1
Staff members 30 3
Non-Teaching staff 2 1
Students 300 5
Total 333 10
Table 3.1: Sample Composition of the Study

3.5.2 Sampling Techniques

In this study random sampling technique was used in collecting data. Creswell, (2005) defined random
sampling as a subset of individuals that are randomly selected from a population. The goal is to obtain a
sample that is representative of the larger population. Random sampling technique was adopted in
getting the respondents to answer the questionnaires. Kothari, (2004) says that sampling technique is
used because it guarantees desired representation of the relevant sub groups.

3.6 Data Collection Methods

In this study both primary and secondary data were used as methods of data collection. Primary data
are those data which have been collected for the first time such as questionnaire while secondary data
are those data that has been collected by someone else and exist somewhere.

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3.6.1 Primary Data

Primary data is original and collected for the first time by the researcher. It is gathered through
questionnaire and interviews. By using primary data as the method, we collect data during the course of
doing experiment in experimental research. In this study data was gathered through questionnaire and
interviewing the management and employees at the Institute of Finance Management. The reason of
using primary data as a method of data collection is simply involves observation and questionnaire which
enable the researcher to gather information which could not be easily obtained.

3.6.2 Secondary Data

Secondary data are those data that are already available and were collected from secondary sources
of data such as journals, books, newspapers, websites, publications and other documents available in
libraries including research reports from distinguished academicians. In this study secondary data
collected by going through various documents like books, journals, websites which are relevant to the
theme of the study for the purpose of gathering information.

3.7 Data collection tools

According to Creswell (2005) no single technique or instrument may be considered to be adequate in

itself in collecting valid and reliable data. Therefore, two major tools were used to obtain adequate and
reliable information for this study. These include interviews and questionnaires of both structured and
semi-structured nature. This study used data collection tools which involve observation, interview and
questionnaires.

3.7.1 Questionnaire

According to Kothari (2004), a questionnaire is a method of collecting data which uses a set of
questions for collecting data. In this method data are collected with the help of questions. Through this
method, selected respondents of this study had to answer questions on their own and bring back to the
researcher. Both structured and semi structured questions were used in helping the researcher to get
answers and relevant information from respondent.

3.7.2 Observation

Kothari (2004) stated that, observation method allows the researcher to observe how respondents
conduct their day-to-day and how those activities relate to job performance. In this study, the method
was used in order to assess employee’s working environment and the availability of resources for their
job performance within the organization. The observation helped to collect nonverbal responses from the
respondents. This was done through the use of checklist.

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